Trump backs Argentina’s landmark LNG project in win for Milei

The US Export-Import Bank has pledged up to $6 billion in financing for Argentina's landmark natural gas project, providing crucial support under President Javier Milei's administration. Argentina LNG, poised to be the country's largest infrastructure undertaking, received an offer from the US government's credit agency, according to YPF SA, the state-run energy firm leading the project.

Italy's Eni SpA and Abu Dhabi's Adnoc are among the investors in the endeavor to extract Argentina's vast shale gas resources in Patagonia. The three companies are actively seeking banks like JPMorgan Chase & Co. and Santander to help fund the $24 billion needed for infrastructure development, including processing plants, pipelines, and floating liquefaction units.

YPF CEO Horacio Marín revealed that the partners would finalize their investment decision in November, contingent upon receiving letters of intent from banks and export credit agencies for lending arrangements. Interest in Argentina LNG is surging as European and Asian buyers seek to diversify their energy sources away from the Middle East due to the Iran conflict.

This project, expected to produce 12 million tons annually of liquefied natural gas, could become the world's largest offshore liquefaction plant, redefining global suppliers. Under Milei's leadership, Argentina is establishing a major shale exports hub along its Atlantic coast, complemented by another smaller LNG facility and an oil port, both set to commence operations in the coming year.

The ExIm Bank's support follows a year after the US administration provided Milei's government with a $20 billion currency swap line to prevent currency instability before midterm elections. The US and Argentina also inked a trade agreement last February.